RCom soars 4 pc on report of stake sale to Etisalat

ADAG firm Reliance Communications on Monday surged 4 per cent in early trade amid reports that UAE-based Emirates Telecommunications (Etisalat) is close to buying a 26 per cent stake in the company.

Shares of RCom rose 3.92 per cent to Rs 194.45 on the Bombay Stock Exchange.

Witnessing a similar trend on the National Stock Exchange, RCom was trading at 192.15, up 2.62 per cent from previous close.

According to the media report, Etisalat is close to buying a 26 per cent stake RCom.

The report also added that Etisalat will have to divest its 45 per cent holding in another Indian telecom firm Swan Telecom to buy stake in RCom as Indian regulations do not allow one company to own more than 10 per cent in two telecom groups.

However, both the companies declined to comment on the deal, which is estimated to be worth about USD 3 billion.